Recently, people have shifted from public to private transport. They enjoy the luxurious and comfortable ride in their car. However, most of those cars are bought through car finance loan schemes. Some choose Personal Contract Purchase (PCP) over Hire Purchase (HP). The reason for choosing PCP plans is that it allows the individual to drive the car and change it in the next 3-4 years. In this way, one can enjoy rides on different cars after every few years. However, HP allows you to own the car after you have made all the payments for a certain time. Some people can afford HP plans; others are good with PCP plans. It depends on the affordability of the individual.

How Do People Make PCP Claims?

Individuals buy PCP plans through car dealers. When someone buys a car, the dealers charge an interest rate. Before 2021, these car dealers were free to decide the interest rates. However, it came to the Financial Conduct Authority (FCA) notice that brokers and dealers charge too much interest rate, which does not serve the purpose of PCP to the individuals. They would call it a discretionary commission, which was never mentioned in the PCP agreement. Therefore, individuals have had PCP claims since 2021, and solicitors are resolving them with maximum compensation. Moreover, the FCA monitors the complaint handling system to ensure that individuals are compensated for mis-sold PCP plans.

Am I Due Compensation?

There is a chance you missed the PCP plan, but everyone doesn’t have to be mis sold. Some dealers have also charged fairly to their customers. You should talk to a solicitor if you still decide whether to make a car finance claim. They will tell you the factors that may indicate your PCP claims, such as if your credit history is not good and you bought an expensive car on loan. You should have been more informed about the vehicle’s value and condition. Also, if the PCP agreement has Legal assist ambiguities, you can still make car finance plans.

What is Included in PCP Claims?

If the solicitor has proven that your PCP claim is valid, you will be compensated for the extra payments you have made, including the interest rate. You will also be paid a goodwill payment. Also, if you made any repairs to the vehicle and it was not your responsibility, the vehicle repair cost will be compensated.

Who Do You Claim to?

The FCA has told firms and dealers how PCP claims can be managed. If you still need to make your car finance claim, now is the time to do it. You should check your paperwork to see if it mentions the commission that needs to be checked and whether they charged the right amount. But if they did not charge the commission, then you must have been mis-sold. You should file a complaint with your lender about PCP claims, and they should investigate your case.

Procedure to Make a Complaint

You should file a complaint with the lender so you can be reimbursed. However, there is a procedure to make a complaint:

1. Collect all the evidence about your PCP plan.
2. Please write to your lender that they have overcharged you and specify the areas where you think you have overpaid the finance.
3. The lender has to review your letter, and they should respond to you as soon as possible.
4. If you are not satisfied with their response or they have neglected your letter, then you can file your complaint to the Financial Ombudsman Service (FOS).
5. The FOS will decide whether your lender responded well to you or if there is something else they should do.

How Do Solicitors Help in PCP Claims?

The experienced solicitor would know in what ways your mis-sold for car finance. They will ask you to gather all the evidence to ensure your car finance claim eligibility.

Do Solicitors Charge Fees?

Remember that no solicitor will charge you a fee for making the complaint. Therefore, you should know that if someone asks for payment, you are misguided again. They will only charge you a percentage of the compensation they have got you. So, it is a win-win situation for you.

PCP claims have increased recently when the Financial Conduct Authority has taken action against the car dealers who have been charging high commissions under the name of high interest rates. However, you should contact a qualified solicitor who can get you maximum compensation for your claim.

PCP Claims Procedure

The way you start the PCP claims process determines its outcome. Selecting a solicitor for your claim is an excellent way to start your compensation process. They will only ask for payment if they fail to secure compensation for you. Another option is to do it yourself, even though it might take a while, you can give it a shot.

What actions should I take?

If you desire a car temporarily without long-term ownership, consider enrolling in a PCP scheme. Nevertheless, you must review.

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